Frequently Asked
Questions
(FAQ)
- Why do I need an agent?
Today's world reflects "specialization" in most every work
environment. You wouldn't go to a Podiatrist for sinus problems the same
as you wouldn't go to a residential agent for a commercial real estate
need. The knowledgeable commercial agent understands current market
conditions and will gladly do the 'footwork' required to ferret-out the
property that best fulfills your needs (Saving you time and allowing you
to do what you do best - your own business). A Commercial real estate
Agent will do the following: Survey the market to determine all
available opportunities; Assist in the Client's process of evaluating the
various locations; Provide insight and counsel regarding the relationship
between buyer/seller, or tenant/landlord; Assist in negotiations; Finalize
the transaction, making sure that all documents and legal requirements are
met and make sure that all time requirements and other milestones are
achieved.
- What is a Buyer/Tenant Representation Agreement? A Buyer/Tenant Representation Agreement creates a special agency
between the broker (as the agent) and the Buyer/Tenant (as the
principal). The broker is engaged to find the buyer or tenant a
suitable property. It places the principal on a level of having an
"in-house" real estate agent. Usually, this is done at no cost to the
principal.
- What is a "Sale-Leaseback?"
A Sale-Leaseback is comprised of two separate but simultaneous
transactions involving the same piece of real estate: 1) Sale of the real
estate by its owner/user to an investor, and 2) A Leaseback to the seller
by the buyer/investor, permitting the seller to have continuing rights to
use the property under the terms of the lease.
- What is Title Insurance?
Title Insurance entails the issuance of an insurance policy that promises
that if the state of the title is other than is represented on the face of
the policy and, if the insured suffers loses as a result of the
difference, the insurer will reimburse the insured for that loss and any
related legal expenses, up to the face amount of the policy. Title
insures, unlike property or casualty companies, operate under the theory
of risk elimination.
- What is an "Estoppel Certificate?"
Generally, a Tenant Estoppel Certificate serves two main purposes. First
and foremost, it provides the buyer or lender with pertinent information
on the current status of such things as rental schedules, security
deposits, rental offsets, tenant improvements, etc. Second, it prevents
the tenant from later contradicting the information contained in the
certificate.
- What are the duties of a Property Manager? A Property Manager's
primary objective is to maintain the rental property and account to the
owner. It is not enough for the property manager to maintain a casual
attitude of - "when I get around to it, I will do it." He/she must pursue
their tasks as property manager with consistent perseverance and vigilant
activity, to include (but not limited to): handling all income and
expenses produced by the property; contracting for services, repairs and
maintenance on the property; monitor utility services provided; qualifying
and showing tenants the property; negotiating and executing leases;
serving notices and filing Unlawful Detainer actions, if needed; perform
regular property inspections and keeping secure any personal property.
- Are real estate fees/commissions negotiable? Yes! While there
is a general structure that commercial real estate brokers use to set
their fee, they are always negotiable and should be decided prior to
engaging an agent to represent you interest. Remember, however, that your
agent will be cooperating with other agents in the sale or leasing of your
property, and if the fee is set too low, that cooperation-level may be
diminished if those outside agents feel that the compensation for their
time and effort is not justifiable.
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